Correlation Between Xtrackers ShortDAX and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Pebblebrook Hotel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xtrackers ShortDAX and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on Xtrackers ShortDAX and Pebblebrook Hotel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xtrackers ShortDAX with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Pebblebrook Hotel.
Diversification Opportunities for Xtrackers ShortDAX and Pebblebrook Hotel
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Pebblebrook is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust and Xtrackers ShortDAX is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xtrackers ShortDAX are associated (or correlated) with Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Pebblebrook Hotel
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Pebblebrook Hotel. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.6 times less risky than Pebblebrook Hotel. The etf trades about -0.12 of its potential returns per unit of risk. The Pebblebrook Hotel Trust is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 794.00 in Pebblebrook Hotel Trust on April 25, 2025 and sell it today you would earn a total of 116.00 from holding Pebblebrook Hotel Trust or generate 14.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xtrackers ShortDAX vs. Pebblebrook Hotel Trust
Performance |
Timeline |
Xtrackers ShortDAX |
Pebblebrook Hotel Trust |
Xtrackers ShortDAX and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers ShortDAX and Pebblebrook Hotel
The main advantage of trading using opposite Xtrackers ShortDAX and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Pebblebrook Hotel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel's long position.Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
Pebblebrook Hotel vs. Stag Industrial | Pebblebrook Hotel vs. Salesforce | Pebblebrook Hotel vs. JAPAN AIRLINES | Pebblebrook Hotel vs. Perseus Mining Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
CEOs Directory Screen CEOs from public companies around the world | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |